The DSI sentiment for Gold is in single digits and has been falling, like the price, since the US election. It is undeperforming silver and all other metals. Although the risk of a snapback rally is high and some volatility around the Fed decision likely, chart patterns still suggest lower to 1084 area before we see $100 bounce back to retest broken support at 1182.

Bigger Picture; the monthly chart shows gold in a declining wedge. It is stair-climbing down the monthly Fibonacci retrace levels. Losing 1085 again sends us to 889 next where we should see a significant support for a rally, potentially back to 1182 or 1283.

I am looking for a way to trade an AUD rebound. AUDUSD is not that attractive right now because of USD strength and the upcoming Fed (maybe) hike. I like EURAUD short, AUDCAD long. Here is a look at EURAUD.

EURAUD monthly

The bigger picture: monthly chart shows a reversal at the 50% of the decline from the 2008 high. The rally from the 2012 low looks like 5 waves and impulsive but because stalling at the 50% and because it could also be an C=0.618A rally there is an argument to be made it is corrective. Either way at a minimum I expect continued decline to re-test the 0.236 fib (2008 high - 2012 low) which was support in 2015 and 50% of the rally from the Aug 2012 low at 1.4095. 1.4023 is also interesting structural support from August 1997.

EURAUD weekly shooting star

Weekly shooting star reversal candle at key levels.

EURAUD daily

Daily chart shows entry at 50% retrace of the last swing lower (May high to August low), equal ABC correction from the August low and 200 day moving average.

Trade summary:

I sold the 1.5030 level will add on a retrace bounce back to 1.4930. Stop 1.5110. Target 1.4030 .

*A EuroDollar is not the Euro currency; it annoys many old FX traders to hear the euro currency referred to as "eurodollar". A eurodollar refers to a US dollar on deposit at banks outside the US. Similarly, eurodollar futures are a very popular interest-rate futures contract.